Select tech names are poised to make a comeback as the second quarter commences. The information technology sector was a big winner in 2024, but it has taken a beating in the first few months of 2025. Year to date, the sector is off about 12%, and it is currently the second worst-performing sector in the S & P 500 , behind consumer discretionary. There are several headwinds to blame for the sector’s recent stretch of underperformance. President Donald Trump’s new trade policies have pressured tech names, many of which have exposure to overseas markets through sourcing and manufacturing. Investors have also sold their high-flying tech shares to start the year, fleeing into defensive sectors, such as consumer staples and utilities. Still, analysts believe some of these names could bounce back sooner than others. CNBC Pro used LSEG data to screen the S & P 500 tech sector for beaten-down stocks that could climb as the second quarter begins. To be included in the following table, stocks had to meet the following criteria: Have posted a decline of at least 20% year to date Have a consensus buy rating Have an average price target implying upside of at least 20% One name on the list was cloud computing provider Arista Networks , down nearly 30% this year. The average price target is approximately 50% above where shares are currently trading, per LSEG. In March, JPMorgan reiterated its overweight rating on the name. “We are adding Arista to the Analyst Focus List with the drivers being a growth strategy with upside to our December-25 price target of $140,” wrote analyst Samik Chatterjee. Catalysts for upside going forward include anticipated acceleration in revenue growth in 2026 and 2027, stemming from higher adoption of ethernet in artificial intelligence data centers, he said. The analyst added that Arista is at an “attractive entry point following pullback.” Chatterjee’s price target suggests 78% upside from where shares of Arista closed on Tuesday. Similarly, analysts see shares of Dell Technologies rising 52% from here, per LSEG. Shares of the personal computer manufacturer have slipped 20% in 2025. Last week, Morgan Stanley analyst Erik Woodring reiterated his bullish stance on the stock. “While broad market uncertainty remains, we believe DELL is hitting its stride,” he wrote. “Of course, the macro remains volatile and tariff policy remains fluid, which creates risk to hardware spending, but we believe DELL’s exposure to CIO’s top spending priority (AI/ML), focus on cost efficiency, and strong [free cash flow] generation/shareholder returns can better insulate the company in more challenging times.” The analyst’s price target of $128 represents potential upside of 39% from Tuesday’s close. Other names on the list included ServiceNow , On Semiconductor and Broadcom . Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
